Scielo RSS <![CDATA[BAR - Brazilian Administration Review]]> vol. 14 num. 1 lang. pt <![CDATA[SciELO Logo]]> <![CDATA[Are Country and Size Risks Priced in the Brazilian Stock Market?]]> Abstract When estimating a firm's cost of equity for valuation and other purposes in emerging markets without (or with only partial) capital market integration, many practitioners include a premium for country risk. In principle, the inclusion of such a risk factor would be justified if the particular country of interest was not sufficiently integrated into the global capital market. Initially, the paper measures and tests the degree of integration for the Brazilian market and does not reject the hypothesis of integration. The paper then tests directly the relevance of country risk premium in individual stocks' expected returns in the Brazilian market. Monthly data for the stocks of 57 of the most actively traded, non-financial firms, over the 2004 to 2014 period are used, using EMBI (Emerging Markets Bond Index) as a proxy for country risk, and this is found not to be significant. Finally, a premium for the size factor, also commonly used by practitioners, is also tested. Although it is found to be significant, the premium is negative, in contrast with current practice, which entails the addition of a positive premium to the required returns on small stocks. The inclusion of both a country risk and a size premium, in addition to the market portfolio risk premium, corresponds to the use of the Goldman Sachs model, as proposed by Mariscal and Lee (1993). <![CDATA[Ethical Decision-Making: The Role of Self-Monitoring, Future Orientation, and Social Networks]]> Abstract This study examines the influence of individual factors (self-monitoring, temporal orientation) on social networking, and their relationship with unethical decision-making. The study used surveys to measure the unethical intentions and social network data of 129 professionals. Data were analyzed using confirmatory factor analysis and structural equation modeling. The findings provided evidence that individual factors influence the development of social networks and, along with self-monitoring, the likelihood of unethical decision-making. In particular, being in positions of lower network centrality increased individuals' risk of unethical intention. One explanation stems from the need for high situation control to reduce risk and ensure the success of an event, which only a closed network can provide. However, ethical low self-monitor women were also found to have low centrality, so social networks alone do not explain ethical decision-making. This research represents a step forward in our understanding of ethical decision-making through the adoption of multiple and simultaneous factors, proposing an integrated theory of individual and situational factors influencing unethical options. <![CDATA[Networks, R&D Projects and Subsidiary Behavior in a Host Country]]> Abstract This article aims to verify how multinational subsidiaries establish their networks in a host country. The literature addresses only networks formed between the subsidiary and its mother and sister companies. However, to consider the external network is essential, because the subsidiaries are not a mere receptor of knowledge from the headquarters, they develop their own capability for creating knowledge and innovation for the multinational. To examine the creation of these networks, this paper focuses on two subsidiaries located in Brazil belonging to a group that carries out R&amp;D projects in partnership with several organizations in the country and creates research and development networks in their sector. To analyze the network characteristics, the authors used Ucinet and NetDraw software and found the following results: (a) geographic distance is a driver in establishing partnership among subsidiaries and executor organizations; (b) the majority of the relationships are tied between a company and a research organization, showing that theoretical knowledge and practical experience are considered by companies to develop and market project outcomes; and (c) although the subsidiaries belong to the same group, they do not have strong ties.